If the council believe that
- The HMO is reasonably suitable for occupation by the number of tenants (amenity and fire precautions standards)
- The proposed licence holder and manager, if there is one, is a fit and proper person
- The proposed management arrangements are satisfactory
The council will issue a licence. This may have various conditions attached to it.
If they don't believe these criteria have been met, they may refuse to grant a licence. You have a right to appeal against the council's actions to the residential property tribunal.
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